Industries with the Highest Profit Margin in Australia in 2023

1. Superannuation Funds in Australia

Profit Margin 2023: 82.1%

Significant global market volatility has affected invest incomes for superannuation funds in recent years. The initial COVID-19 outbreak and subsequent economic uncertainty, including inflationary pressures, saw revenue for funds fluctuate dramatically. Superannuation fund revenue is expected to increase at an annualised 0.7% over the five years through 2022-23, to total $230.1 billion, although the period has seen significant volatility. Superannuation fund's total assets are a more accurate indicator of the industry's size, with assets expected to grow at an annualised 3.4% over the same period, to $3.5 trillion. Continued incremental increases to the Superannuation Guarantee Scheme have boosted contributions to... Learn More

2. Lithium and Other Non-Metallic Mineral Mining in Australia

Profit Margin 2023: 81.9%

Spodumene concentrate (lithium ore) has become by far the dominant product in the Lithium and Other Non-Metallic Mineral Mining industry over the five years through 2023-24. Spodumene concentrate is still mainly exported to China for further processing, but major mining firms have started to use it domestically to refine lithium hydroxide. Spodumene concentrate output has increased over the past five years, particularly over the three years through 2023-24. While production is growing strongly, surging demand is behind the largely price-driven growth, as strong demand from the Chinese electric vehicle market and lithium stockpiling is prompting a spike in world prices.... Learn More

3. Financial Asset Investing in Australia

Profit Margin 2023: 49.5%

Financial asset investors have benefited from a generally strong domestic sharemarket performance over the past five years. Typically, industry funds are invested in equities and industry revenue depends on various sharemarket performances. The COVID-19 pandemic and ensuing inflationary pressures significantly disrupted both local and global equity markets, which limited industry performance. Yet, total assets have continued to accumulate over recent years compounding returns for investors, assisted by previously low interest rates. Overall, industry revenue is expected to rise at an annualised 4.2% over the five years through 2023-24, to $143.2 billion.

The low interest rate environment that characterised the trading landscape... Learn More

4. Iron Ore Mining in Australia

Profit Margin 2023: 48.7%

Iron ore miners have benefited from major increases in iron ore prices, and modest growth in production volumes over the past five years. Iron ore revenue is expected to increase at an annualised 8.1% over the five years through 2022-23, to total an estimated $124.1 billion. Strong demand from China and disruptions to iron ore producers in Brazil prior to, and during the COVID-19 pandemic, sent iron ore prices soaring. Iron ore prices are projected to fall in 2022-23, prompting iron ore revenue to drop an estimated 16.2% over the year.

Over the past decade, strong economic growth in China has... Learn More

5. Finance in Australia

Profit Margin 2023: 46.9%

The Finance sector's operating environment has characterised by record low interest rates and market turbulence over most of the past five years. A strong residential property market supported by housing price growth and high numbers of house transfers have supported the incomes of many lenders. Yet, volatile business confidence and inflationary pressures have limited growth in capital expenditure from the private sector and overall demand from commercial clients. Competition from neobanks and other fintech disruptors has spurred some larger financial firms to invest in new capabilities in the online space. Overall, sector revenue is expected to decline at an... Learn More

6. Online Car Classifieds in Australia

Profit Margin 2023: 44.8%

Revenue for the Online Car Classifieds industry has been volatile in recent years but has grown overall. New passenger vehicle sales are diminishing as the economy deteriorated during the pandemic, negatively affecting credit availability and constraining demand for online car classifieds. The pandemic caused revenue to plummet in 2019-20 as restrictions on movement and gatherings hurt demand for motor vehicles and their accompanying classified ads. However, online car classifieds sellers have benefited from rising demand for online services, with online classifieds websites supplanting newspapers as the main resource for private car listings. Revenue is set to climb at an annualised... Learn More

7. Toll Road Operators in Australia

Profit Margin 2023: 44.0%

Toll road operators charge motorists for the right to access high-quality roads that reduce travel times. Revenue from individual toll roads is typically stable as individual assets grow in popularity with motorists over their lifetime, and congestion and market acceptance boost toll road use and allow operators to raise prices and expand. However, industry revenue volatility can rise when new roads enter operation. The industry is capital-intensive, as tunnels, bridges and other expensive design features are often built on toll roads to save motorists time on their commutes. Ideally, tolling revenue is sufficient to cover both operating costs and provide... Learn More

8. Office Property Operators in Australia

Profit Margin 2023: 42.6%

Trading conditions have been challenging for the Office Property Operators industry. The number of non-manual employees in the workforce and private sector capital expenditure have been climbing, supporting overall demand. But fluctuating business confidence and reduced demand from superannuation funds have considerably dulled performance. The COVID-19 pandemic hit the financial outlook of many firms across the country; economic uncertainty led to negative business confidence, which discourage downstream customer firms from expanding their operations or acquiring office space. Superannuation funds invest a lot of money in office property, and lower demand from this market cut into the performance of office property... Learn More

9. Online Advertising in Australia

Profit Margin 2023: 38.3%

The Online Advertising industry has grown strongly over the past five years, as consumers have become more frequent users of social media, web-based applications and other internet systems. Industry operators provide services through search engines, online applications, online videos, streaming services and online directories. The industry is highly concentrated, with the top four players accounting for more than 70% of revenue in the current year. Google is the dominant player, with its search engine advertising services attracting significant web traffic from consumers and businesses. Google also attracts extensive advertising revenue from its online video service, YouTube. The outbreak of COVID-19... Learn More

10. Eye Surgery Clinics in Australia

Profit Margin 2023: 36.1%

Eye surgeons, also known as ophthalmologists, are medical professionals that specialise in diagnosing and treating eye conditions. Revenue for the Eye Surgery Clinics industry has contracted over the past five years, principally as a result of the COVID-19 pandemic. The threat of the virus has resulted in many patients delaying or cancelling treatment over the past two years, particularly in Victoria, which battled a significant second wave of COVID-19 early in 2020-21. A reduction in the total population covered by private health insurance has also placed downward pressure on industry growth. Industry revenue is projected to contract at an annualised... Learn More